Microsoft has accused Google of conducting "shadow campaigns" against it, following the launch of the Open Cloud Coalition (OCC).

The OCC launched today (October 29) and describes itself as an alliance of leading cloud providers and users that aims to improve competition, transparency, and resilience within the cloud industry.

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Currently with ten members, those involved include Centerprise International, Civo, Gigas, and Google Cloud, and domestic companies such as ControlPlane, DTP Group, Prolinx, Pulsant, Clairo, and Room 101.

The coalition is urging the European competition authorities to be "rigorous and brave" in their examinations of the cloud sector.

Nicky Stewart, a senior cloud industry veteran, former member of CISPE, and OCC spokesperson, said: “The cloud market lacks the level playing field required to drive innovation, competition, and value for customers. A dedicated platform campaigning on these issues is needed to advocate for fairness, openness, and interoperability, ensuring that regulations and industry practices support these principles.

“The launch of the Open Cloud Coalition couldn’t come at a more critical time. As regulatory scrutiny increases, it’s vital that all voices are heard to ensure the cloud ecosystem remains competitive and innovative. Our founding principles are very clear that each member will have an equal voice. We urge all companies who share this vision to join us.”

However, Microsoft CVP and deputy general counsel Rima Alaily argued in a blog post that this "astroturf group" is designed to "discredit Microsoft with competition authorities, and policymakers and mislead the public," and that Google has attempted to "obfuscate its involvement" in OCC.

Alaily suggests that Google has recruited European cloud providers to serve as the public face of the organization while Google will "present itself as a backseat member rather than its leader.

"It remains to be seen what Google offered smaller companies to join, either in terms of cash or discounts," Alaily added.

Alaily drew attention to the recently resolved antitrust probe with CISPE.

CISPE - the Cloud Infrastructure Services Providers in Europe (CISPE) - filed a complaint against Microsoft to the EU Directorate General for Competition in November 2022, querying changes Microsoft had made to its licensing terms. Microsoft and CISPE opened talks in early 2024 to find a resolution, and by July 2024, Microsoft has agreed to pay €20 million ($21.7m) to settle the dispute.

In addition to the cash settlement, Microsoft said it would develop a product - Azure Stack HCI for European cloud providers (Hosters) - that enables CISPE's members to run Microsoft software on their platforms at equivalent prices to Microsoft's.

This decision did not satisfy the likes of Amazon Web Services (AWS) or Google Cloud. At the time, Amit Zavery, head of platform at Google Cloud (since departed), said: "We are exploring our options to continue to fight against Microsoft’s anti-competitive licensing in order to promote choice, innovation, and the growth of the digital economy in Europe."

Shortly after, reports emerged that Google offered CISPE €470m ($507m) to continue its antitrust probe against Microsoft, which was declined.

Alaily goes on to allege that the OCC was motivated by Google's "rejection" by CISPE, and that OCC will be "largely funded by Google for the purpose of attacking Microsoft’s cloud computing business in the European Union and the United Kingdom," citing a company that was approached by declined to join the OCC.

The blog post also claims that Google is the main funder for the US-based Coalition for Fair Software Licensing which has criticized Microsoft's cloud computing business in the US, UK, and EU.

Alaily goes on to suggest that, with 24 antitrust investigations ongoing against Google, it should be "focused on addressing legitimate questions about its business, it is instead turning its vast resources towards tearing down others."

DCD contacted Google and OCC for comment.

OCC's Nicky Stewart said: “The Open Cloud Coalition is transparent about its members which are listed on our website. We are not anti any one company, we are a pro-market coalition that is focused on advocating for principles that will strengthen the marketplace for cloud services in Europe, principally openness and interoperability.

"Any company that shares these values and cares about a healthy and thriving marketplace for cloud should join us.”

A Google spokesperson added: "We’ve been very public about our concerns with Microsoft’s cloud licensing. We and many others believe that Microsoft’s anticompetitive practices lock-in customers and create negative downstream effects that impact cybersecurity, innovation, and choice. You can read more in our many blog posts on these issues.”

In the UK, the Competitions and Markets Authority (CMA) has an ongoing investigation into the cloud industry. In September, it announced it was extending its investigation by four months due to the "nature and complexity of issues," with specific attention drawn to licensing practices that were not previously examined during the Ofcom market study.

While no specific company was named, a previous Computer Weekly report suggested it is specifically Microsoft's licensing practices that needed further investigation.

In hearings related to the CMA investigation, both AWS and Google criticized Microsoft's licensing practices.